2023-10-27 14:54

Copyrighted Image by: Reuters Ex-BitMex CEO, Arthur Hayes, recently drew attention to the role of Bitcoin (BTC) amidst global economic uncertainties and a potential financial crisis. His comments came in a tweet on Wednesday, where he also advised against government profiteering and advocated for investments in tech stocks, gold, and Bitcoin. Hayes pointed out the negative US real interest rates, which he incorrectly calculated at -1.1% using GDP growth and Treasury yield rates. He emphasized the loss of purchasing power of fiat currencies as a consequence of extensive quantitative easing and the central bank's response to the pandemic. His recent comments on Bitcoin resonate with his previous writings about the digital currency, where he has consistently highlighted its potential as an investment tool in times of economic instability. His advocacy for Bitcoin comes at a time when many investors are seeking alternative investment options due to the ongoing economic effects of the pandemic. Despite his strong stance on Bitcoin, it's important to note that Hayes' calculations on US real interest rates were incorrect, which may cast doubt on his advice. However, his emphasis on the loss of purchasing power due to extensive quantitative easing is a concern shared by many economists worldwide. This highlights the ongoing debate about the role of digital currencies like Bitcoin in the global economy, particularly during periods of economic uncertainty. https://www.investing.com/news/cryptocurrency-news/bitcoins-role-in-global-economy-underlined-by-exbitmex-ceo-93CH-3212113

2023-10-27 14:48

Copyrighted Image by: Reuters The cryptocurrency market has seen significant turbulence in recent times, with major players like Binance and FTX facing substantial challenges. In the latest developments, Binance's trading volumes have dwindled, leading to a 38% cut in its revenue projection by the Bloomberg Billionaires Index. This reduction has resulted in a decrease of $11.9 billion in the net worth of founder Changpeng Zhao, bringing it down to $17.2 billion. Binance's market share in crypto trade also saw a dip from 62% in Q1 to 51% in Q3, following the end of a zero-fee promotion. Additionally, Binance's reputation has been further tarnished due to regulatory actions by the SEC and CFTC for poor money-laundering controls and mishandling of client assets. In a related development, after learning that Alameda Research held a significant stake, Zhao liquidated an FTX-related token. This action led to massive withdrawals and eventually to the bankruptcy of FTX, wiping out the wealth of Sam Bankman-Fried. In June, Binance.US halted dollar transactions which caused a sharp drop in trading volumes and devalued the company to zero from a $4.7 billion valuation in a March 2022 funding round. The platform also suspended USD deposits, stopped direct US dollar withdrawals, removed FDIC insurance, and introduced stablecoins and digital assets for withdrawals. These changes have affected banking partners and necessitated measures to safeguard the platform. Amid these challenges, Coinbase (NASDAQ:COIN) Global Inc.'s Q3 trading volumes have also fallen by 52% year-over-year due to regulatory uncertainty and rising interest rates. Despite these setbacks, Binance still holds a central position in the crypto market with 51% of total on-exchange crypto trades as Q3 2023 concludes. https://www.investing.com/news/cryptocurrency-news/binance-faces-revenue-cut-and-regulatory-hurdles-ftx-declares-bankruptcy-93CH-3212110

2023-10-27 14:40

Copyrighted Image by: Reuters. In a contrasting day for the cryptocurrency market on Thursday, Bitcoin (BTC) experienced a slight decline of 1.03%, while Floki Inu (FLOKI) surged by 26.9% following the announcement of its new staking program. The market is closely monitoring developments around the potential approval of Bitcoin-spot Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), as well as scrutiny from U.S. lawmakers. JPMorgan strategist Nicolas Panigirtzoglou has suggested that there could be legal action if these ETFs are not approved by January 10, drawing parallels to Grayscale's recent victory with the SEC. This comes as SEC Chair Gary Gensler stated at the Securities Enforcement Forum that most crypto assets likely fall under securities laws, referring to high-profile cases despite recently dropped charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Adding another layer to the ongoing discussion on crypto regulation is a pending motion to dismiss by Coinbase (NASDAQ:COIN). These regulatory developments have led to increased uncertainty in the cryptocurrency market, with investors closely watching the outcomes. Amidst this uncertainty, Bitcoin continues to trade above its 50-day and 200-day Exponential Moving Averages (EMAs) but needs to break the resistance level of $35,265 for bullish momentum to continue. However, a drop below $33,500 could lead bears toward the support level of $32,436. In contrast, Floki Inu's significant market gain came on the back of its new staking program announcement, demonstrating how project-specific updates can have a significant impact on individual cryptocurrency prices, even in an uncertain regulatory environment. https://www.investing.com/news/cryptocurrency-news/bitcoin-faces-resistance-while-floki-inu-surges-on-staking-program-announcement-93CH-3212107

2023-10-27 11:29

In a series of financial upheavals, Binance founder Changpeng Zhao (CZ) has experienced a significant $11.9 billion hit to his fortune. This downturn is primarily due to a 38% reduction in Binance's estimated revenues, the bankruptcy of FTX following the liquidation of an FTX-linked token, and the cessation of dollar transactions on the platform. The crypto exchange saw its estimated revenues cut by 38%, leading to a drop in CZ's fortune from $29.1 billion to $17.2 billion. The fall in revenue was calculated using data from Coingecko and Coinpaprika. The liquidation of an FTX-linked token, in which hedge fund Alameda Research had a substantial stake, sparked panic withdrawals. This led to the bankruptcy of FTX, wiping out the fortune of Sam Bankman-Fried, Alameda's founder, which had peaked at $26 billion. Following the end of a zero-fee promotion, Binance's market share dropped from 62% in Q1 to 51% in Q3, according to CCData. The decision to halt dollar transactions led to a volume drop and reduced Binance's US exchange value to zero, further impacting CZ's net worth. Furthermore, Binance is grappling with regulatory lawsuits from the SEC and Commodity Futures Trading Commission. These lawsuits allege inadequate money-laundering controls, inflated trading volumes, and mishandling of client assets. Regulatory uncertainty and rising interest rates have also affected other exchanges like Coinbase (NASDAQ:COIN) Global Inc., resulting in a 52% drop in spot trading volume in Q3. Despite these challenges and increasing isolation from traditional finance sectors, Binance continues to dispute the allegations and is fighting them in court. Meanwhile, Bankman-Fried is currently on trial in New York for fraud following his involvement in the financial debacle at Binance. The company did not respond to requests for comment regarding these issues. https://www.investing.com/news/cryptocurrency-news/binance-founders-fortune-plummets-amid-regulatory-lawsuits-and-token-liquidation-93CH-3211749

2023-10-27 08:19

The Uniswap Foundation's recent deposit of 9.79 million UNI tokens, equivalent to $4.19 million, into OKX exchange, Falcon X, and CEXs, has led experts to predict a price correction for Uniswap (UNI), which is currently trading at $4.09. The altcoin has remained around the $4.02 support level for the past six weeks. However, a 9.24% drop following a mid-October rally signals a potential further decline. On-chain metrics and an increase in UNI supply on exchanges from 62.27 million to 65.35 million reflect a bearish sentiment among investors. In addition to this, there has been a 6.57% drop in Uniswap whale wallets holding between 100,000 to 1,000,000 UNI, further indicating investor uncertainty. The Relative Strength Index (RSI) suggests an 8% correction to $3.70 if the $4.02 support level fails. Increased selling pressure could push UNI down to $3.35, representing a 17% crash. Despite the bearish outlook, if buying pressure pushes UNI to close above $4.38, it could invalidate this perspective and potentially trigger a 15% upswing to $5.04. This demonstrates the volatility and unpredictability of the cryptocurrency market and the need for investors to stay informed about these rapid changes. https://www.investing.com/news/cryptocurrency-news/uniswap-faces-potential-price-correction-after-midoctober-rally-93CH-3211336

2023-10-27 05:09

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose on Friday and were just shy of the key $2,000 an ounce level as reports that the U.S. military struck Iran-linked targets in Syria spurred a renewed rush for safe haven assets. The strikes, which were on two facilities in Eastern Syria, were in retaliation for recent attacks on U.S. troops in Iraq and Syria, the Pentagon said on Thursday. The Pentagon also said that attacks on U.S. troops had increased since the onset of the Israel-Hamas conflict earlier this month. The news pushed up concerns over a broader escalation in the Middle Eastern conflict, which could potentially draw in more Arab powers. This in turn spurred a rush into conventional safe havens. Fears of an escalation in the Israel-Hamas war have been a key driver of gold gains this month, putting the yellow metal at an over five-month high earlier in October. Spot gold rose 0.2% to $1,989.49 an ounce, while gold futures expiring in December rose 0.1% to $1,999.0 an ounce by 00:47 ET (04:47 GMT). Both instruments were trading marginally higher for the week. Fed meeting, inflation data in focus But further gains in the yellow metal were held back by strength in the dollar and Treasury yields, as markets positioned for a Federal Reserve meeting next week. While the central bank is widely expected to hold interest rates steady, it is also expected to reiterate its plans to keep rates higher for longer. But before that, a reading on the personal consumption expenditures index- the Fed’s preferred inflation gauge- is due later on Friday. Any signs of sticky U.S. inflation gives the Fed more impetus to keep rates higher, which in turn bodes poorly for non-yielding assets such as gold. Signs of resilience in the U.S. economy, following stronger-than-expected U.S. gross domestic product data for the third quarter, also give the Fed more headroom to keep rates higher. The dollar steadied on Friday, and was set to add 0.4% this week. Copper prices rise as China trends improve Among industrial metals, copper prices rose slightly on Friday, extending a recovery from over five-month lows as data showed some improvement in the Chinese economy. Copper futures rose 0.3% to $3.6022 a pound, and were also up 1.1% for the week. Data on Friday showed that China’s industrial profits improved marginally in the year to September, falling 9% in the period after a 11% decline in the year to August. Copper prices were also encouraged by better-than-expected third quarter U.S. GDP data. https://www.investing.com/news/commodities-news/gold-prices-rise-keep-2000-in-sight-as-usiran-tensions-grow-3211190